Francesco Sorbara

[Enhancing Transparency and Accountability in the Transportation System Act, November 21st, 2023]

Madam Speaker, I was able to participate in the wall-breaking ceremony at Billy Bishop airport for a new U.S. pre-clearance facility, so Canadians travelling, in particular in the GTA departing from Billy Bishop airport and going down to Boston, New York or Florida or wherever the destination, will save their time. We have seen airlines like Porter Airlines continue to expand their routes across Canada, internationally and cross-border into the United States. We have seen some other airline operators come to fruition and operate. Obviously, we enjoy the services of Air Canada and WestJet. When they are on time, we are always very happy. When they are not, we are kind of grumpy.

However, on the serious side, the hon. member is exactly right. We need competition in our airline sector, along with all sectors of the Canadian economy where competition provides for innovation, lowers prices and provides for better services.

[Enhancing Transparency and Accountability in the Transportation System Act, November 21st, 2023]

Madam Speaker, the hon. member for Scarborough—Guildwood is a very learned member of the House.

As the GTAA caucus chair, we meet with the officials regularly on a monthly basis. We inform them and we have a kit for our travellers and our residents. As the member for Scarborough—Guildwood said, the process of going through security at Toronto Pearson airport, at the Ottawa airport, at the Vancouver airport or other airports across the country has vastly improved over the last year or two.

We have put in process improvements and have provided funds, but there is also ongoing collaboration between CATSA, the airport authorities, Transport Canada and the Minister of Transport's office. That type of collaboration is what Canadians want and expect us to do it. They are seeing the results of that in a very streamlined, efficient and effective process when they go through security to get on a plane to go home or to go on vacation.

[Enhancing Transparency and Accountability in the Transportation System Act, November 21st, 2023]

Madam Speaker, it is always an honour and a pleasure to rise in this House.

As my hon. colleague, the member for Scarborough—Guildwood, said, I have the privilege of chairing the Liberal caucus that addresses our relationship with the Greater Toronto Airports Authority, the GTAA. We call it the airline caucus or the airports caucus. I am very happy to speak to Bill C-52, an act to enact the air transportation accountability act and to amend the CTA and the CMA.

As many of us who live in the greater Toronto area know, whether we live in Mississauga, Vaughan, northwest Toronto, the Etobicoke area or High Park, there is an immense amount of airline traffic. That applies to Brampton, Caledon, Kleinburg and other areas. We hear quite significantly from our constituents about aircraft noise, aircraft routes, changes in aircraft routes brought on by Nav Canada and the subsequent refurbishment of runways at the GTAA and the Toronto Pearson airport, which impact people's daily lives.

It is really great to see that in Bill C-52, we would establish “requirements in respect of noise management committees” and would set out “notice and consultation requirements relating to aircraft noise”. We would provide “a process by which to make complaints respecting notice and consultation requirements in relation to aircraft noise”. That means for constituents who go to the Pearson airport or other airports across Canada, we would have a formalized process for complaints respecting notice and consultation requirements in relation to aircraft noise. We would also provide for “an administration and enforcement mechanism that includes an administrative monetary penalty framework”. This is just another way we are responding to consumers.

Before I make my formal remarks, I will say that it is so great to go back to our constituents and say that we have listened to them, we want a consultative process that works and we are going to have a consultative process. The bill would create a formal process for notifying and consulting the public on changes to airspace designs that affect aircraft noise near airports to ensure that communities that would potentially be affected by such changes can be engaged. That engagement and the consultation process are so important.

Now I will get to my formal remarks.

I am pleased to have the opportunity to speak to Bill C‑52, the enhancing transparency and accountability in the transportation system act, which offers concrete measures to address a number of concerns that were raised about the accountability and transparency of operators across the sector.

I think we can all agree on the importance of having the efficient, accessible, accountable transportation system Canadians deserve. That includes making sure that Canadians have access to a system in which operators are transparent and accountable to stakeholders, users and passengers.

As we all know, air travel has reopened to Canadians since the pandemic. However, as an ecosystem, it is lacking clear terms of service between operators and passengers. As a result, passengers are often unaware of who is responsible for which activities and who they should talk to if a trip does not go as planned. This bill will help address those concerns.

We all dislike when our flights are delayed or cancelled.

I want to take a second to talk about the part of the bill that enables the creation of regulations requiring flight operators and anyone delivering flight-related services to set service standards. These standards would apply not only to airport operators, but also to other companies that deliver a range of flight-related services in airports. The plan would be for the airport operator to coordinate the development of standards at their airport. They would work with airlines, the Canadian Air Transport Security Authority, Nav Canada and others.

Service levels are an important issue of concern to all Canadian travellers. As we saw when airports were congested in the summer of 2022 and the holiday period that followed, passengers did not really know who was responsible for what, who could provide information, or who they could contact to fix their situation. This kind of uncertainty can be frustrating, causing disruptions and inconvenience.

That is why the new proposed regulatory authorities aim to improve the overall delivery of service in our transportation system. Once the regulations are adopted, the service standards will provide clear guidelines on a variety of services that affect passengers’ experiences. The specific services requiring standards will be defined in the regulations, and the standards themselves will be negotiated among the parties concerned, but examples may include the time allotted for luggage to reach the carousel after the flight lands and the expected waiting time for security screening.

That is not all. To ensure accountability and transparency, the service standards will be published and specify how they are to be enforced. The various operators in the airline industry will be responsible to one another and to the travelling public throughout the trip.

Even though the regulations will describe the types of services requiring standards and include services that affect the passengers’ flight experience, the intention is to make airport operators responsible for ensuring and coordinating the development of these standards.

The specific target parameters, for example, luggage delivered within x minutes after landing, will be more suitably worked out by the parties having business relationships and operational expertise, and they may vary from one airport to the next. We want to make sure that the service standards will be adapted to the specific circumstances of the airport in question.

The regulations could establish another procedure for dispute resolution if the various parties do not manage to come to an agreement on the appropriate service standards.

For the moment, the initial focus will likely be on major airports. Details concerning airline sector participants, services, and other issues will be defined in the regulations.

If Bill C-52 receives royal assent, the development of regulations on service standards will follow the normal regulatory process and consultations will be held with all parties concerned.

The government will remain open-minded throughout the regulatory process and support the industry in implementing these standards, which should support the industry’s actions.

Our objective is to encourage better collaboration among all the entities involved in our travel system and make our airline industry more efficient. By working together, we think that we can improve travellers' overall experience and enhance service quality.

This approach focuses primarily on travellers' needs and on measures that benefit them directly. It also encourages information sharing with the public so that passengers can make more informed decisions while travelling.

In conclusion, the advance creation of service standards and the obligation to publish them, along with a collaborative approach, should result in positive changes for our air transportation system. We look forward to a future of smoother and more efficient travel, centred on passenger needs.

[Tourism Industry, November 20th, 2023]

Mr. Speaker, in Canada, we take pride in our tourism industry and showing our country's beauty. Tourism is essential to Canada's economy, being one of the country's top sectors and supporting more than two million jobs. We know this sector has an economic impact that reaches from coast to coast to coast. This was highlighted in the federal tourism growth strategy this summer, and it is why we will continue to support our tourism strategy.

Can the Minister responsible for the Federal Economic Development Agency for Southern Ontario tell us how our government is supporting local tourism?

[National Security Review of Investments Modernization Act, November 9th, 2023]

Madam Speaker, we are not soft on Russia in any manner. Investments that come from China, Russia or any other state or non-state actors are all reviewed very judiciously and diligently by the folks covered under the Investment Canada Act, and they will continue to do so. We need to ensure that the intentions of people investing in Canada are in our national security interest and that they will help their shareholders in their creation of wealth and so forth.

[National Security Review of Investments Modernization Act, November 9th, 2023]

Madam Speaker, I would like to thank my colleague for his very important question. Foreign investment is vital to our economy, our national security and our future. We are talking about the future of our constituents.

When we examine foreign direct investment in Canada, it is very important that this modernized bill, Bill C-34, come through. The last time the ICA was reviewed was in 2009. The economic world and the technological world have changed greatly since 2009. We need this bill to move forward.

The collaboration that was seen at the industry committee was very important. It was great to see. We continue to move forward on this bill, which is in the interests of all Canadians and our economic future.

[National Security Review of Investments Modernization Act, November 9th, 2023]

Madam Speaker, in terms of Canada's relationship with our Five Eyes partners or groups, we have a very robust relationship. It is a very strong relationship. It is a relationship that has existed for many years, and I would say decades. It is a relationship where day to day, people working for the Government of Canada, our security and defence apparatus, are in contact with their pertinent peers. It is something that all governments need to value and respect. We know that. Canada is at the table on a multilateral basis in many organizations throughout the world.

In terms of the question that the hon. member had about a review of investments, when we examine foreign direct investments we must have the mindset where we do not put in place exemptions. We obviously understand who our allies are in the liberal democracies of the world, whether it be the United States, Australia, the U.K., or other countries, but putting in place exemptions, I personally feel, is not the right way to pursue the legislative process in the Investment Canada Act. It must be broad enough to handle certain unique situations, but it must be focused in a place so that if investments are coming from state and non-state actors, the process is robust, with the capacity to review them for national security and economic considerations.

[National Security Review of Investments Modernization Act, November 9th, 2023]

Madam Speaker, I appreciate that very pertinent and direct question.

I believe that amendment was adopted and it has relevance to what the hon. member was referring to in order to ensure that we examine any effects of any rights related to intellectual property where their development was funded by the Government of Canada. I believe that is one of the tangents that the hon. member is asking for.

Intellectual property in itself is something very important in today's world. Intellectual property, in terms of patents being put in place in different jurisdictions, has different effects. We know that intellectual property is something that we always need to examine. It is changing rapidly, and we need to have a regime in place here. One process is with the Investment Canada Act which directly examines this, because it is very important for our national and economic security.

[National Security Review of Investments Modernization Act, November 9th, 2023]

Madam Speaker, Cariboo—Prince George is a beautiful part of British Columbia in our blessed nation.

It was great to see that in total, eight amendments were adopted during the committee study of the bill, with four of them being from the official opposition. That is something we can all applaud with respect to where there was collaboration.

In terms of how far the bill goes and does not go, I do want to put on the record this morning that independent of where the investment is coming from, whether it is from Russia, China or any other state actor or non-state actor, all investments will be reviewed if they need to be. In terms of the minister, there will be more added flexibility because the minister would take a look at it rather than it being a Governor in Council decision. That also would provide flexibility.

There are a number of improvements in this bill. It is a vast update from the 2009 iteration. It is great to see that this has happened. I would say, in my humble view, to the member for Cariboo—Prince George that there was a lot of collaboration. I see that now, sitting on the industry committee with my colleagues from all parties, and it is great to see that we continue to go forward in the same manner on other pieces of legislation.

[National Security Review of Investments Modernization Act, November 9th, 2023]

Madam Speaker, I sit on the industry committee with the hon. member, and I appreciate his intervention. We will always talk about the Investment Canada Act and how foreign companies are investing into Canada and creating good-paying, middle-class jobs for Canadians from coast to coast to coast. That is what I am doing in my speech this morning.

Tools such as the Investment Canada Act must also be modernized to offer additional protections in light of changing geopolitical and technological advancements and to prevent hostile actors from exploiting Canada's expertise and capacity for innovation. We must all be aware of geopolitical risks, and that they and instability are now fixtures in our operating environment, especially for businesses. Hostile state and non-state actors pursue deliberate strategies to acquire goods, technologies and intellectual property. They do so in ways that are fundamentally incompatible with Canada's interests and principles. We also know that foreign investments can be used as a conduit for foreign influence activities that seek to weaken our norms, values and institutions.

Members will recall that the Investment Canada Act played an important role in Canada's response to the Russian invasion of Ukraine. As early as March 2022, we issued a policy statement saying that any investment, controls or influence by the Russian State will also support a determination by the minister that there are reasonable grounds to believe that such an investment could be injurious to Canada's national security, regardless of its value. The statement sends a clear message about our commitment to protecting Canada's economic security from unwanted investment. Moreover, Canada's Indo-Pacific strategy is clear that the region will play a critical role in Canada's future over the next half-century. The significant opportunities for economic growth in the region are also accompanied by challenges related to the objectives of certain world powers that do not share our democratic and liberal principles.

We must respond to this reality in a number of ways, including in the way foreign investment is assessed and examined. In short, the Investment Canada Act plays a key role in protecting Canada's economic interests from hostile foreign actors. It is broad in scope and allows Canada to respond to changing threats that may arise from foreign investment, while protecting Canada's openness to beneficial international investment.

Again, I would like to say that this morning, the OECD stated its numbers for foreign direct investment in Canada, which OSFI operates through the Investment Canada Act to a large degree. Canada, for the first half of this year, came in third place behind the United States and Brazil. That is all the OECD rankings of over 30 countries. We are on the right path of continuing to grow the economy, attracting foreign investment from all over the world, along with our domestic companies investing. The act is broad in scope and allows Canada to respond to changing threats that may arise from foreign investment, while protecting Canada's openness to beneficial international investment.

The package of amendments proposed in this bill is designed to assure businesses and investors that Canada has a clear, predictable and stable regulatory regime. The nexus between technology and national security is clear and is here to stay. Rapid technological innovation has provided Canada with new opportunities for economic growth, but it has also given rise to new and difficult policy challenges.

More and more, Canada is being targeted by hostile actors. That threatens both our national security and our prosperity. Our government must therefore adapt our tools to more effectively defend us against current and future threats.

All around the world, foreign investments are now coming under much closer scrutiny from a national security standpoint, also considering various factors such as the impact of the COVID-19 pandemic, the repercussions of climate change on security, global supply chain disruptions and changing geopolitical considerations.

We are equipping ourselves today to face the threats of tomorrow. Canada will remain a destination of choice for foreign investment.

Now, more than ever, we need to make sure we are doing everything we can to foster an innovative, healthy and growing economy. The guidance and decisions issued over the past several years make clear that some transactions, particularly those by state-owned or state-influenced investors, may be motivated by non-commercial interests and imperatives that could harm Canada's national security.

I will repeat that these types of investments in sectors deemed sensitive currently face enhanced scrutiny under the Investment Canada Act. Our government believes that an effective review regime must be robust, transparent and flexible to adapt to a changing world and now is the time to make these changes. I believe the last changes were made in 2009. That is why we stand today to vote in favour of this bill, which represents the most significant amendments to the ICA since 2009.

We are making important moves now to review and modernize key aspects of the act while ensuring that the overreaching framework to support foreign investment to grow our economy remains strong, open and, I would add, flexible. Our record as a government makes it abundantly clear that where national security is concerned, we will not shy away from decisive action. Our assessment of risk keeps pace with evolving economic and geopolitical circumstances.

The ICA already gives us much of the authority we need to intercede and address national security risks that can arise from foreign investments. These amendments build on a strong foundation and will improve the mechanics around national security review of investment. Now is the time to act decisively so that we can make sure that Canada will continue to gain the economic benefits of investment while strengthening our ability to address threats to our country and ensure its future prosperity.

We recognize that Bill C-34 has undergone a rigorous, robust study spanning across 11 meetings. I applaud the members of the industry committee on this process. During those meetings, we heard from a variety of legal and subject-matter experts, who testified about the benefits that foreign direct investment has on Canadian businesses, the importance of protecting Canada's intellectual property and the need to ensure a regime that is capable of tackling the emerging national security challenges that Canada and our security partners are facing in the liberal democracies of the world.

We have engaged meaningfully with opposition members to discuss their perspectives and concerns and have worked collaboratively to bring new amendments that will further strengthen the bill. We have worked together to ensure that Canada's foreign investment regime continues to be the gold standard.

Bill C-34 will provide us with better tools to protect our national security. It will also help to bring Canada into greater alignment with our international partners and allies. My colleagues heard from witnesses at INDU about how important it is for Canada to have a regime comparable to its allies. Having a comparable regime helps to address common threats and maximize our collective effectiveness.

We all know that the amendments proposed in Bill C‑34 will contribute to that important balance. We have to protect Canadians and Canadian businesses while ensuring that investors continue to see Canada as a destination of choice.

Yes, Canada is the first destination of choice for foreign investment.

We know that Canada and our allies share similar national and economic security concerns. Our allies are concerned with threat actors operating in multiple jurisdictions to secure a monopoly in critical access in technology. We see that with critical minerals. It is becoming increasingly more important to share information with allies to support national security assessments to prevent these threats from happening.

This new information-sharing authority strengthens co-operation between Canada and other like-minded countries to defend against an investor that may be active in several jurisdictions seeking the same technology, for example, and having motives ill toward. That said, Canada would not be obligated to share such information where there are confidentiality or other concerns.

I want to thank my esteemed colleagues for their attention today. I can assure members that our approach is pragmatic, principled and collaborative. It provides a solid framework to address evolving geopolitical threats while allowing Canada's review regime to be more aligned with our international allies and in the interests of Canadians. The collaborative efforts during the INDU committee ensure that we meet these goals, which is why I believe that this bill, as amended, should be adopted and referred to the Senate.

We are confident that with Bill C-34, Canada will continue to encourage positive investment that will grow our economy and create good jobs in all ridings across Canada. I do not think there is a riding in Canada that does not have some form of foreign direct investment in it or that is not affected by foreign direct investment. It should always be done in a positive, long-term and sustainable manner without having to compromise on national security. We know that in today's world there are actors, foreign-state actors and non-state actors, who have ill intentions towards the liberal democracies of the world, including our blessed home here in Canada, and so we need the best of both worlds.

I hope all of us can work together to stand for Bill C-34 to get it to the Senate for further study and make this bill law to strengthen Canada's economic and national security.

It has been a pleasure to speak to this bill this morning. It was great to see the OECD comment with respect to Canada's reputation for foreign direct investment and coming into third place for the first half of the year. We have seen flows in foreign direct investment via countries across the world, with Canada being increasingly the destination of choice. There are the Volkswagen investment and the Stellantis investment, as well as Honda, Toyota and other entities. There are investments in Kingston, investments in Northvolt in Quebec and investments in B.C. that are happening. Across the board, we see foreign companies choosing Canada to invest their dollars for their shareholders to create wealth here in Canada. It is something that is great to see. We need to encourage it from all sides of the House.

I thank hon. members for their attention this morning. I look forward to hearing their questions and comments.